What mortgage type for buying a second home?

NotFrugalEnough

Hello Guys,

I am looking to buy a second home to use through the week for work so I don't have to commute.

Since I am not looking to sell my existing property, will I be applying for a first time buyers mortgage or a remortgage? They seem to be the only two options available to me on websites.

Thanks.

herbiesjp

You are neither, unless you are remortgaging your first property to raise funds for the second one.

Most on-line sites are pretty dire in allowing to break down specifics - they only show rates, and are not bothered about criteria.

You will need to be able to support both mortgages on your income in order to get a second property mortgage (assuming you have a mortgage on the first one that is.)

holly_hobby

Tax wise (CGT liability on disposal) - you will also need to specify from outset which is your main residence. So if this is your 2nd home - then there will be cgt liability (less allowable deductions) upon its disposal.

Hope this helps

Holly

TMSL

Holly makes a very valid point, unless you are a politician in which case you can switch them as and when you like to avoid tax. Be careful when selecting lenders as onlky a handful will allow a second residential mortgage, I would steer clear of the online (find a cheap rate) sites and seek the help of a broker on this one.